- Fresnillo plc
- Claude Resources (in the mid year this company was replaced with B2 Gold)
- Newmarket Gold (now Kirkland Lake)
- Fortuna Silver
- Richmont Mines
As the chart shows, between December 16, 2015 and November 30, 2016 the portfolio delivered a return of 130% (GDX: 48% and S&P 500: 6%). Well, despite a strong correction in the precious metals sector the Top Five Portfolio is still performing very well (much better than the broad precious metals market).
That is why I want to repeat this experiment and construct a new portfolio for 2017. This time it is going to be a little bit different. Let me explain.
A new portfolio will consist of five picks. I think a few picks may be the same as in 2016 but a few new companies will surely be added.
Next, contrary to this year, I am going to be more active. It means that some rebalancing is possible. If I find a new and, in my opinion, a better company I am going to replace an old pick with this new one.
Now, what criteria do I use to decide whether a pick qualifies to my portfolio? Here they are:
- Only producers - My picks do not include any exploring company. Simply put, explorers are riskier than producers, and I want to limit risks as much as possible. What is more, these producers must hold at least two operating mines.
- Debt free - Debt is also risky, so my top companies hold either very small debt or even no debt at all.
- Low costs of production - My picks are low-cost producers. If I am wrong claiming that this bull cycle in gold is intact, low-cost producers should perform relatively better than other PM-related stocks. It means that losses incurred by investors should be relatively low.
- Catalysts - Looking for the best stocks, I am trying to find companies with some near-term catalysts defined as a big chance for a relevant increase in production, a possible acquisition or management change etc.
Within the next two weeks I will notify you on this blog that the portfolio is ready to be dispatched.
What will you get for this price? Let me list:
- five stock picks
- portfolio rebalancing (if I decide to replace an old pick with a new one you will get this new pick for free)
- regular updates (at least one per quarter) - the updates should include my comments on financial results, operating results etc.
- alerts - you will be notified if there is any important issue related to the stock pick
Simply put - you pay $50 and I am doing the job for you.
That's it. Quite simple I guess.
All details, pay buton and notifications will be available in the section "Top Five 2017".
Last but not least. Because it is a paid service I will not comment on the new portfolio on this blog, Seeking Alpha etc. The picks or comments on them will be available only for paid subscribers.